View full sizeTriMetThe proposal for a rail line from Portland State University in Southwest Portland to Milwaukie includes a new bridge across the Willamette River. This is one of the designs that was considered for the crossing.

With nine months remaining before construction is set to begin on a new light-rail line between Portland and Milwaukie, TriMet officials find themselves scrambling to fill a funding gap that recently exceeded $100 million.

But TriMet officials crossed their fingers and kept pressing for more, confident they would receive federal funding of 60 percent, as they had on past projects.

Portland-to-Milwaukie MAX line

Current estimated funding for the project, with an estimated cost of almost $1.5 billion. This leaves the current gap, after cuts and new contributions, at $54.2 million, down from $137 million in July.

New Starts federal program: $745.2 million

State lottery bonds: $250 million

Bond costs: $174.2 million

Metro flexible funds: $99.8 million

Property contributions: $56.7 million

TriMet: $40 million

Portland: $30 million

Clackamas County: $25 million

State grant: $10 million

Milwaukie: $5 million

Metro grant: $300,000

Source: TriMet

Doomsday arrived in July, when a top national transit official told Oregon to stop asking; the golden goose would keep stricter ration of her eggs. That forced TriMet to propose project cuts and look for more money from local governments.

"This one's a really tough one," Adams said of the gap, which now stands at $54.2 million not counting Portland's potential increase. "This project is at risk unless we figure it out."

TriMet leaders are unable to point to another time in their legacy of light-rail projects in which they've struggled to plug a big gap so late in the game.

The shortfall has delayed final design of the project by about three months, but officials say they can still begin in-water construction for a new bridge over the Willamette River by next summer. A delay on bridge work would push back the schedule by a year and drive up costs by an additional $60 million.

The 7.3-mile project, the region's sixth light-rail line, would run from Portland State University to just south of Milwaukie, with service to begin in September 2015.

"I wouldn't say it was optimistic," said Dan Blocher, TriMet's capital projects executive director. "We're not shy about trying to get as much of a discretionary program as we can. It's getting harder. There's more demand. There's more competition."

TriMet first submitted a budget to the Federal Transit Administration during its preliminary engineering application in July 2008. The budget assumed a 60 percent share from the national New Starts program. But federal officials then asked TriMet to outline a 50-50 split, which they later approved.

In March, TriMet submitted a final design application asking the federal government to cover 60 percent.

"They were listening," Blocher said. "They were not making a decision one way or the other. They were not saying no. They were not saying yes. They were listening."

But a decisive "no" came from Peter Rogoff, the nation's top transit administrator, who wrote to Oregon's congressional delegation July 22. Regrettably, he told them, it's necessary to hold funding at 50 percent because of high demand and competition among projects nationwide.

Rogoff pointed out that other mega-projects totaling more than $1 billion had, on average, received just 35 percent in federal money in recent years.

"P.S." read a handwritten note from Rogoff. "Sorry I don't have better news."

TriMet is putting a greater emphasis on finding money than eliminating project components; under the 50 percent plan, every dollar spent locally will be matched by the federal government.

As it stands, TriMet has outlined $62.3 million in potential cuts. Big cost-trimming options include reducing stalls at a Sellwood park-and-ride facility by half, trimming contingency funds by 6 percent and eliminating the purchase of two light-rail trains.

On the fundraising side, transit officials say they've recently secured $20 million from a state grant and in-kind property donations. The $27.4 million Metro contribution an almost 40 percent increase, is the most significant so far.

"I'm sure it's very hard for TriMet to go back to partners and ask for more money," said Ferguson, who also works in TriMet's marketing department.

Back in Portland, Adams said he is considering a contribution in the range of $25 million, which could include property donations.

"That's a big chunk of change for us," Adams said. He declined to specify where the money might come from, though. The city is already tangling with Multnomah County about funding to replace the Sellwood Bridge, with Adams initially pledging $100 million.